Not much going on this weekend. Only a little meeting between the world’s two most powerful leaders about 2019’s single most important economic issue.
U.S. prez Trump and Chinese supreme head communist guy, Xi, collide over trade ahead of Saturday’s G-20 summit in Japan. And, batten down the hatches, because it has the potential to be a short-term tide changer for mortgage rates.
Also fuelling a sentiment change is crude oil, which is up near 4-week highs. That’s sometimes a slightly bullish sign for fixed rates near-term.
Meanwhile, bond yields—which guide fixed mortgage rates—are trying their best to put in a short-term bottom.
The moral of the story: If you’re mortgage shopping and waiting to lock in until fixed rates drop more, be careful. There’s a legit risk that rates pop higher before making new lows. Trump wants to come away with good news and play the trade hero. Markets are coiled up just waiting to explode (i.e., bond yields higher) if a China breakthrough appears likely.
Can’t Be Greedy
If you’re closing in the next 120 days and leaning fixed, get a rate hold by next week, especially if G-20 news out of Japan is positive this weekend.
If the most competitive lenders do offer more 5-fixed discounts, they probably won’t be headline-making. That is, unless the orange-haired wonder can’t make nice with China and goes on a tariff rampage.
Here are this week’s best-in-class rate deals…
- 1.99% 2-year fixed at DUCA (Ontario / insured only)
- 2.42% to 2.49% 5-year fixed at online brokers (AB, BC, NB, NL, ON, PE / insured only)
- 2.63% to 2.69% 5-year fixed at online brokers and HSBC (uninsured / refis okay)
- 2.94% to 2.99% 10-year fixed at online brokers and HSBC (nationwide / insured only)
Variable / Other